Nevada
|
4600
|
20-1673271
|
(State
or other jurisdiction of
incorporation
or organization)
|
(Primary
Standard Industrial
Classification
Code Number)
|
(I.R.S.
Employer
Identification
Number)
|
P.O
Box 488 Cut Bank, Montana
|
59427
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer
|
¨
|
Accelerated
filer
|
¨
|
Non-accelerated
filer
|
¨
|
Smaller
Reporting Company
|
x
|
PART I — FINANCIAL
INFORMATION
|
3
|
Item 1. Financial
Statements
|
3
|
Item 2. Management’s Discussion and Analysis or
Plan of Operation.
|
11
|
Item 3. Quantitative and Qualitative Disclosure
about Market Risk
|
14
|
Item 4. Controls and
Procedures.
|
15
|
PART II — OTHER INFORMATION
|
15
|
Item 1. Legal Proceedings.
|
15
|
Item 1A. Risk Factors
|
15
|
Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds.
|
15
|
Item 3. Defaults Upon Senior
Securities.
|
15
|
Item 4. Submission of Matters to a Vote of
Security Holders.
|
15
|
Item 5. Other Information.
|
16
|
Item 6. Exhibits.
|
16
|
March
31,
|
||||||||
2009
|
December
31
|
|||||||
UNAUDITED
|
2008
|
|||||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ | 70,032 | $ | 79,790 | ||||
Trade
receivables
|
12,498 | 24,070 | ||||||
Deposit
|
- | - | ||||||
Total
Current Assets
|
82,530 | 103,860 | ||||||
OIL
AND GAS PROPERTIES
|
||||||||
Oil
and gas properties, using the full
|
||||||||
cost
method of accounting:
|
||||||||
Properties
being amortized
|
455,894 | 455,894 | ||||||
Properties
not subject to amortization
|
201,514 | 138,383 | ||||||
Less
accumulated depletion, amortization and impairment
|
(142,200 | ) | (129,400 | ) | ||||
Net
Oil and Gas Properties
|
515,208 | 464,877 | ||||||
OTHER
ASSETS
|
||||||||
Website
development costs (less accumulated amortization)
|
1,030 | 1,240 | ||||||
Total
Other Assets
|
1,030 | 1,240 | ||||||
|
||||||||
Total
Assets
|
$ | 598,768 | $ | 569,977 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Accounts
payable and accrued liabilities
|
$ | 5,706 | $ | 5,708 | ||||
Production
taxes and royalties payable
|
2,464 | 4,409 | ||||||
Well
settlement payable
|
57,130 | - | ||||||
Total
Current Liabilities
|
65,300 | 10,117 | ||||||
Asset
retirement obligation
|
8,879 | 8,879 | ||||||
|
||||||||
Total
Liabilities
|
74,179 | 18,996 | ||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Common
stock, no par value-
|
||||||||
Authorized
Shares - 100,000,000
|
||||||||
Issued
& Outstanding: 7,808,000 shares at March 31,
2009;
|
1,155,500 | 1,155,500 | ||||||
7,808,000
at December 31, 2008
|
||||||||
Additional
paid in capital
|
21,295 | 21,295 | ||||||
Stock
subscription receivable
|
(2,000 | ) | (2,000 | ) | ||||
(Deficit)
accumulated during the development stage
|
(650,206 | ) | (623,814 | ) | ||||
Total
Stockholders' Equity
|
524,589 | 550,981 | ||||||
|
||||||||
Total
Liabilities & Stockholders' Equity
|
$ | 598,768 | $ | 569,977 |
Three Months
|
Three Months
|
Inception
|
||||||||||
Ended
|
Ended
|
(April 16, 2002)
|
||||||||||
March 31,
|
March 31,
|
March 31,
|
||||||||||
2009
|
2008
|
2009
|
||||||||||
UNAUDITED
|
UNAUDITED
|
UNAUDITED
|
||||||||||
REVENUE
|
$ | 12,498 | $ | 33,357 | $ | 439,717 | ||||||
PRODUCTION
(LIFTING) COSTS
|
5,458 | 8,752 | 129,564 | |||||||||
EXPLORATION
EXPENSES
|
- | - | 3,862 | |||||||||
DEPLETION,
DEPRECIATION AND
AMORTIZATION
|
13,010 | 13,910 | 143,670 | |||||||||
INCOME
FROM OIL & GAS
|
||||||||||||
PRODUCING
ACTIVITIES
|
(5,970 | ) | 10,695 | 162,621 | ||||||||
SELLING,
GENERAL &
|
||||||||||||
ADMINISTRATIVE
EXPENSES
|
20,422 | 31,047 | 812,827 | |||||||||
NET
(LOSS)
|
$ | (26,392 | ) | $ | (20,352 | ) | $ | (650,206 | ) | |||
EARNINGS
PER SHARE
|
||||||||||||
Net
Income, basic and diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | ||||||
Weighted
average number of shares outstanding
|
7,808,000 | 7,508,000 | ||||||||||
Diluted
potential shares - stock warrants
|
- | - | ||||||||||
Adjusted
weighted average shares
|
7,808,000 | 7,508,000 |
(Deficit)
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Additional
|
Stock
|
During
|
||||||||||||||||||||||
Common
Stock
|
Paid
In
|
Subscription
|
Development
|
|||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Receivable
|
Stage
|
Total
|
|||||||||||||||||||
BEGINNING
BALANCE, INCEPTION
|
||||||||||||||||||||||||
(APRIL
16, 2002) TO DECEMBER 31, 2004
|
- | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Common
stock issued
|
6,240,000 | 624,000 | - | - | - | 624,000 | ||||||||||||||||||
Net
(loss)
|
- | - | - | - | (346,422 | ) | (346,422 | ) | ||||||||||||||||
BALANCE,
DECEMBER 31, 2004
|
6,240,000 | 624,000 | - | - | (346,422 | ) | 277,578 | |||||||||||||||||
Common
stock issued
|
- | - | - | - | - | - | ||||||||||||||||||
Net
income
|
- | - | - | - | 66,381 | 66,381 | ||||||||||||||||||
BALANCE,
DECEMBER 31, 2005
|
6,240,000 | 624,000 | - | - | (280,041 | ) | 343,959 | |||||||||||||||||
Common
stock issued
|
- | - | - | - | - | - | ||||||||||||||||||
Net
(loss)
|
- | - | - | - | (20,068 | ) | (20,068 | ) | ||||||||||||||||
BALANCE,
DECEMBER 31, 2006
|
6,240,000 | 624,000 | - | - | (300,109 | ) | 323,891 | |||||||||||||||||
Common
stock issued for services
|
330,000 | 147,000 | - | - | - | 147,000 | ||||||||||||||||||
Common
stock warrants exercised
|
938,000 | 234,500 | - | (2,000 | ) | - | 232,500 | |||||||||||||||||
Common
stock options issued
|
- | - | 21,295 | - | - | 21,295 | ||||||||||||||||||
Net
(loss)
|
- | - | - | - | (255,025 | ) | (255,025 | ) | ||||||||||||||||
BALANCE,
DECEMBER 31, 2007
|
7,508,000 | 1,005,500 | 21,295 | (2,000 | ) | (555,134 | ) | 469,661 | ||||||||||||||||
Common
stock issued
|
300,000 | 150,000 | - | - | - | 150,000 | ||||||||||||||||||
Net
(loss)
|
- | - | - | - | (68,680 | ) | (68,680 | ) | ||||||||||||||||
BALANCE,
DECEMBER 31, 2008
|
7,808,000 | 1,155,500 | 21,295 | (2,000 | ) | (623,814 | ) | 550,981 | ||||||||||||||||
Net
(loss) for the three months ended March 31, 2009
(UNAUDITED)
|
- | - | - | - | (26,392 | ) | (26,392 | ) | ||||||||||||||||
BALANCE,
MARCH 31, 2009
|
7,808,000 | $ | 1,155,500 | $ | 21,295 | $ | (2,000 | ) | $ | (650,206 | ) | $ | 524,589 |
Inception
|
||||||||||||
Three
Months
|
Three
Months
|
(April
16, 2002)
|
||||||||||
Ended
|
Ended
|
Through
|
||||||||||
March
31, 2009
|
March
31, 2008
|
March
31, 2009
|
||||||||||
UNAUDITED
|
UNAUDITED
|
UNAUDITED
|
||||||||||
OPERATING
ACTIVITIES
|
||||||||||||
Net
(loss)
|
$ | (26,392 | ) | $ | (20,352 | ) | $ | (650,206 | ) | |||
Changes
and credits to net (loss)
|
||||||||||||
not
affecting cash
|
||||||||||||
Depletion
and amortization
|
13,010 | 13,910 | 143,670 | |||||||||
Organizational
expenses paid with stock
|
- | - | 300,000 | |||||||||
Legal
fees paid with stock
|
- | - | 172,000 | |||||||||
Stock
compensation expense
|
- | - | 21,295 | |||||||||
Changes
in assets and liabilities
|
||||||||||||
Trade
receivables
|
11,572 | (15,716 | ) | (12,498 | ) | |||||||
Deposits
|
- | (5,000 | ) | - | ||||||||
Production
taxes and royalties payable
|
(1,945 | ) | 2,714 | 2,464 | ||||||||
Accounts
payable
|
(2 | ) | 9,239 | 5,706 | ||||||||
NET
CASH FROM (USED FOR)
|
||||||||||||
OPERATING
ACTIVITIES
|
(3,756 | ) | (15,205 | ) | (17,568 | ) | ||||||
INVESTING
ACTIVITIES
|
||||||||||||
Website
development
|
- | - | (2,500 | ) | ||||||||
Additions
to oil and gas properties
|
(6,002 | ) | (12,715 | ) | (431,400 | ) | ||||||
NET
CASH (USED FOR) INVESTING
|
||||||||||||
ACTIVITIES
|
(6,002 | ) | (12,715 | ) | (433,900 | ) | ||||||
FINANCING
ACTIVITIES
|
||||||||||||
Proceeds
from sale of common stock
|
- | - | 150,000 | |||||||||
Proceeds
from exercise of warrants
|
- | - | 371,500 | |||||||||
NET
CASH PROVIDED BY FINANCING
|
||||||||||||
ACTIVITIES
|
- | - | 521,500 | |||||||||
NET
CHANGE IN CASH AND CASH
|
||||||||||||
EQUIVALENTS
|
(9,758 | ) | (27,920 | ) | 70,032 | |||||||
CASH
AND CASH EQUIVALENTS AT
|
||||||||||||
BEGINNING
OF PERIOD
|
79,790 | 77,329 | - | |||||||||
CASH
AND CASH EQUIVALENTS AT
|
||||||||||||
END
OF PERIOD
|
$ | 70,032 | $ | 49,409 | $ | 70,032 |
Three Months
Ended
March 31,
2009
|
Three Months
Ended
March 31,
2008
|
|||||||
Revenue
|
$ | 12,498 | $ | 33,357 | ||||
Expenses
|
$ | 38,890 | $ | 53,709 | ||||
Net
Income (Loss)
|
$ | (26,392 | ) ) | $ | (20,352 | ) ) |
Ludwig State 36-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2009
|
2008
|
|||||||||||||||
January
|
231.21 | 3.09 | 284.63 | 3.91 | ||||||||||||
February
|
211.20 | 2.34 | 265.65 | 4.45 | ||||||||||||
March
|
218.83 | 1.80 | 261.73 | 4.98 |
Boucher
27-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2009
|
2008
|
|||||||||||||||
January
|
110.14 | 3.09 | 89.10 | 3.91 | ||||||||||||
February
|
71.16 | 2.34 | 85.39 | 4.45 | ||||||||||||
March
|
56.72 | 1.80 | 73.22 | 4.98 |
B. Ag #25-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||||||||
2009
|
2008
|
|||||||||||||||
January
|
38.80 | 3.09 | 40.80 | 3.91 | ||||||||||||
February
|
33.80 | 2.34 | 41.80 | 4.45 | ||||||||||||
March
|
36.80 | 1.80 | 42.20 | 4.98 |
Vandenbos #19-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
|||
2009
|
2008
|
||||||
January
|
708.06
|
3.09
|
1792.93
|
3.91
|
|||
Febtuary
|
632.57
|
2.34
|
1658.87
|
4.45
|
|||
March
|
683.72
|
1.80
|
1578.84
|
4.98
|
Boucher #18-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||
2009
|
2008
|
|||||||||
January
|
413.33 | 3.09 | ||||||||
Febtuary
|
356.40 | 2.34 | ||||||||
March
|
365.48 | 1.80 |
Stoltz #18-1
|
Share of
Production
Volumes
|
Price
Per
MCF
|
Share of
Production
Volumes
|
Price
Per
MCF
|
||||||
2009
|
2008
|
|||||||||
January
|
27.83 | 3.09 | ||||||||
Febtuary
|
19.50 | 2.34 | ||||||||
March
|
13.41 | 1.80 |
Drilling
Activity
|
||||||||||||||||||||||||
Gross
Wells
|
Net
Wells
|
|||||||||||||||||||||||
Three
Months ended March 31,
|
Total
|
Producing
|
Dry
|
Total
|
Producing
|
Dry
|
||||||||||||||||||
2009
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
2008
|
2 | 2 | 0 | 0.5 | 0.5 | 0 |
Three
Months ended March 31,
|
2009
|
2008
|
||||||
Net
Production
|
||||||||
Oil
(Bbls)
|
- | - | ||||||
Gas
(Mcf)
|
4,229 | 6,215 | ||||||
Average
Sales Prices
|
||||||||
Oil
(per Bbl)
|
$ | $ | ||||||
Gas
(per Mcf)
|
$ | 2.96 | $ | 5.37 | ||||
Average
Production Cost Per MCF
|
$ | 1.29 | $ | 1.40 |
Exhibit
|
Item
|
|
31.1
|
Certification
of Principal Executive and Principal Financial Officer pursuant to Section
302(a) of the Sarbanes-Oxley Act of 2002
|
|
32.1*
|
Certification
of Principal Executive and Principal Financial Officer pursuant to Section
302(a) of the Sarbanes-Oxley Act of
2002
|
MAJESTIC
OIL & GAS, INC.
|
||
Date: May 14,
2009
|
By:
|
/s/ Patrick
Montalban
|
(Authorized
Officer and Principal Executive
Officer)
|
Exhibit
|
Item
|
|
31.1
|
Certification
of Principal Executive and Principal Financial Officer pursuant to Section
302(a) of the Sarbanes-Oxley Act of 2002
|
|
32.1*
|
Certification
of Principal Executive and Principal Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of
2002
|